Study On The Legal Risks And Countermeasures In The Operation Of The AIIB

In recent years,Asia’s economy has developed rapidly and intra-regional cooperation has become more deepened.However,due to many historical reasons,the backwardness of infrastructure has become an important obstacle to the further development of many Asian countries.China has accumulated a great deal of experience in the field of infrastructure construction.Due to domestic overcapacity,China’s willingness to export abroad is becoming stronger and stronger.China has the capital and ability to play a leading role in the field of infrastructure investment in Asia.It is in this background that the AIIB was established.As the first international multilateral development institution initiated and led by a developing country,the AIIB has made great achievements.So far,the AIIB has 93 members,including 23 prospective members.Jin Liqun,president of the AIIB,said that in addition to the current membership,the number of AIIB members is expected to reach 100 by the end of this year.The growing membership shows that the AIIB has won increasing international trust.In addition,the AIIB has approved a total of 39 projects with a total investment of US $7.94 billion.The AIIB contributes greatly to the eradication of extreme poverty around the world and promotes global sustainable development However,most countries in the Asian region are relatively backward,the level of the rule of law is low,and China also lacks experience in building and operating an international multilateral development institution.The AIIB will face various legal disputes and risks in the course of its operation.This requires us to deal with these legal risks more reasonably,so as to make the AIIB run smoothly.Because the AIIB faces a wide range of legal risks in the course of operation,and the AIIB realizes its functions mainly through loans and financing.This paper mainly starts with the legal risks that the AIIB may encounter in the course of operation including legal risks of loan disputes and financing disputes,then this paper analyzes the legal risks in the dispute settlement mechanism.This paper has five parts:The first part mainly summarizes the basic situation of the legal risks faced by the AIIB in the course of operation.This part analyzes the causes of the legal disputes that the AIIB may face from the internal and external aspects,and summarizes the legal disputes that the AIIB may face in three aspects,namely:the legal risks of loan disputes,the legal risks of financing disputes,the legal risks of the dispute settlement mechanism of the AIIB.Among them,the legal risks of loan disputes can be divided into the legal risks of sovereign loan disputes and non-sovereign loan disputes;the legal risks of financing disputes can be divided into the legal risks of co-financing disputes and debt-financing disputes;the legal risks of the dispute settlement mechanism can be divided into the legal risks of judicial immunity and the legal risks of arbitration.The second part mainly analyzes the legal risks of loan disputes faced by the AIIB The legal risks of loan disputes include the legal risks of sovereign loan disputes and non-sovereign loan disputes.This part introduces the definition of sovereign loans and non-sovereign loans,the causes of legal risks arising from these disputes and reasonable measures to deal with them.This part focuses on the analysis of the causes of the legal risk of the loan disputes from two aspects of legal theory and judicial practice,which provides a solid theoretical basis for the AIIB to establish a reasonable mechanism to deal with these risks.The third part mainly addresses the legal risks of financing disputes faced by the AIIB.The main financing mode of the AIIB is co-financing and debt-financing,of which most of the AIIB’s financing projects are co-financing with other international multilateral development institutions.This part mainly analyzes the definition of co-financing and debt-financing,the situation of AIIB’s financing mode,the causes of legal risk arising from these disputes and the corresponding measures to reduce these risks.The fourth part mainly introduces the legal risks in the AIIB dispute settlement mechanism.First of all,it summarizes the characteristics of the AIIB dispute settlement mechanism and the main reasons for these legal risks,that is,the risk of uncertainty of judicial immunity and the risk of application of arbitration.Then it analyzes the specific reasons for the risk,that is,why the judicial immunity enjoyed by the AIIB is uncertain and why the application of arbitration can cause legal risks if the AIIB does not enjoy judicial immunity.The fifth part mainly emphasizes the countermeasures to deal with the legal risks faced by the AIIB in its operation.It mainly starts with how to deal with the legal risks in the AIIB loan disputes,how to deal with the legal risks in the AIIB financing disputes and how to deal with the legal risks in the AIIB disputes settlement mechanism.In a word,this part puts forward measures to deal with the risks during the whole process from the beginning of the dispute to the end.